Denver Foreclosure Process
The foreclosure process in Denver is complicated and unique. Here is a breakdown of the process, from filing to closure:
Power of Sale
In Colorado, lenders may foreclose on a property either by a judicial or non-judicial process, depending on whether the mortgage includes a “power of sale” clause. By agreeing to a “power of sale” clause, the borrower has pre-authorized the sale of property to pay off the balance on the defaulted loan.
When there is no power of sale indicated in the mortgage, the lender files a lawsuit to obtain a court order to foreclose on the defaulted borrower’s property–the first step in the judicial foreclosure process. Generally, after the court declares a foreclosure, the borrower’s home is auctioned off to the highest bidder.
When the defaulted mortgage includes a “power of sale clause,” the lender follows a non-judicial process of foreclosure. In Colorado, the Public Trustee handles the foreclosure as an impartial third party.
First, the lender’s attorney files the required documents with the county’s Public Trustee, who then files a "Notice of Election and Demand" with the county clerk and recorder of the county. Once recorded, the notice is published in a local newspaper for a period of five consecutive weeks. The Public Trustee must also mail a copy of the notice to the borrower within ten days after publication.
The foreclosure sale must take place between 45 and 60 days after the recording of the Notice of Election and Demand. The borrower can halt the foreclosure process by filing an "Intent to Cure" with the Public Trustee's office no later than 15 days before the foreclosure sale, and paying off the loan so that it is current by noon the day before the schedule foreclosure sale.